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Edelweiss Capital - ICICI Direct - 26 05 10 money.umakant.info Q2 2010

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					     Result Update
                                                                                                                                                                                                            May 26, 2010
Rating matrix
Rating                                         :      Add                                                                                       Edelweiss Capital (EDECAP)
Target                                         :      Rs 429
Target Period                                  :      12-15 months                                                                                                                                                     Rs 404
Potential Upside                               :      6%                                              WHAT’S CHANGED…
Trailing 4 quarters growth (Rs Crore)                                                                 PRICE TARGET ............................................................. Changed from Rs 494 to Rs 429
                               Q1FY10               Q2FY10            Q3FY10               Q4FY10     EPS (FY11E) ..................................................................... Changed from Rs 32 to Rs 31
Total Revenue                      224.6              260.6               230.2              262.4    EPS (FY12E) ............................................................................................................Rs 33
EBITDA                             117.5              159.0               124.5              135.6    RATING.......................................................................................................... Unchanged
Net Profit                              55.5              65.1                 53.6           52.3
                                                                                                      Financing book comes to the rescue….
Valuation summary                                                                                     Edelweiss Capital reported disappointing numbers from its core broking
                                                                                                      and treasury operations. This signifies the pressure on yields, which fell
                               FY08            FY09                FY10        FY11E         FY12E
                                                                                                      from 6.2 bps in Q3FY10 to 5.6 bps in Q4FY10. Treasury yields fell to a
EPS                             38.4               24.9            30.7          31.0          33.0
                                                                                                      low of 11% in Q4FY10. Both these factors led to only 34% contribution
Diluted EPS                     37.8               24.1            29.7          30.0          31.9   of broking and treasury income to total income, which ranged at ~50%
PE (x)                          10.5               16.2            13.2          13.0          12.2   in the previous three quarters. The company closed 17 deals during the
RoCE (%)                        29.5               14.7            13.4          12.8          13.1   quarter in investment banking (IB), which led to a five-fold QoQ jump in
RoNW (%)                        25.5               10.6            11.1          10.2          10.0   IB fees in Q4FY10. The significant jump in the loan book led to higher
                                                                                                      interest income and resulted in 43% YoY and 14% QoQ rise in total
EBIDTA margin (%)               60.2               53.3            55.0          60.9          60.8
                                                                                                      income to Rs 262 crore.
BV                             244.9           282.3           309.7            336.5         364.9
P/BV (x)                          1.6               1.4             1.3           1.2           1.1
                                                                                                              Broking volumes fall, market share sinking
                                                                                                      The broking volume of the market fell ~3% QoQ to Rs 95,985 crore but
Stock data                                                                                            Edelweiss reported ~17% QoQ fall in its ADT to Rs 3,913 crore leading to
Market Capitalisation                                                          Rs 3032 crore          a 70 bps fall in the market share to 4.1% in Q4FY10 and 4.5% in FY10. We
ADT (FY10)                                                                     Rs 4350 crore          expect the market share to stay stable at current levels without factoring
Yields (Q4FY10)                                                                            5.6 bps
                                                                                                      in volumes that will be added after the Anagram acquisition.
52 week H/L                                                                           542 / 339               Finance income recoups bottomline
Equity capital                                                                    Rs 38 Crore         The loan book of the company grew 191% YoY and 78% QoQ to Rs 1,837
Face value                                                                                  Rs 10     crore. Of the total loan book, promoter funding is ~Rs 1,000 crore while
FII Holding (%)                                                                              14.0     margin funding and the corporate book constituted ~Rs 250 crore each.
                                                                                                      We do not expect a drastic change in the composition of the funding book
DII Holding (%)                                                                                3.5
                                                                                                      over the next couple of years. The management expects a significant
                                                                                                      scaling up of the financing book by FY12E. We expect this segment to
Price movement                                                                                        contribute over 40% to the total income of the company.

     600                                                                                   6000
                                                                                                      Valuation
                                                                                           5000       At the CMP of Rs 404, the stock is trading at 12.2x FY12E EPS, which is at
                                                                                           4000       a 6% discount to the multiple we have assigned to India Infoline and
     400                                                                                              Motilal Oswal. We are now valuing all three companies under our
                                                                                           3000
                                                                                                      coverage at par and not assigning any premium to any player. We,
                                                                                           2000
                                                                                                      therefore, value Edelweiss at 13x FY12E EPS and downgrade the target
     200                                                                                   1000       price to Rs 429. Our target multiple does not capture any upsides for the
                                           Nov-09


                                                          Jan-10
           May-09


                    Jul-09


                               Sep-09




                                                                      Mar-10


                                                                                  May-10




                                                                                                      company after taking over Anagram Capital, which will give it a diversified
                                                                                                      retail clientele that was lacking in its portfolio.
                             Edelweiss                    NIFTY (RHS)                                 Exhibit 1: Financial performance
                                                                                                      Rs Crore                      Q4FY10          Q4FY10E            Q4FY09            Q3FY10        YoY Gr.(%)       QoQ Gr.(%)
Analyst’s name
                                                                                                      Revenues                         262.4             280.4            183.4             230.2              43.1              14.0
 Kajal Gandhi
 kajal.gandhi@icicisecurities.com                                                                     EBIDTA                           135.6             168.3              95.4            124.5              42.1               8.9

 Viraj Gandhi                                                                                         EBIDTA margin (%)                 51.7              60.0              52.0             54.1                  -                  -
 viraj.gandhi@icicisecurities.com                                                                     PAT                               52.3              66.1              40.9             53.6              27.8              -2.5
 Mani Arora                                                                                           PAT margin (%)                    19.9              23.6             22.3              23.3                  -                  -
 mani.a@icicisecurities.com                                                                           Source: Company, ICICIdirect.com Research




      ICICIdirect.com | Equity Research
Edelweiss Capital (EDECAP)



                                                            Exhibit 2: Break-up of topline




                                                                                                                                                                                              666
                                                             700
                                                                                             (Rs Crore)




                                                                                                                                                                                   540
                                                             600
                                                             500




                                                                                                  371
                                                                                           356
                                                                                     350




                                                                                                                                                                            339
                                                             400




                                                                                                                                                                     331
                                                                                                                                                            326
                                                                                                                                          251

                                                                                                                                                245
                                                                               244
                                                             300




                                                                                                                                                      207
Interest income will drive the topline performance in the    200




                                                                                                                                88
                                                                                                                           73
                                                                                                           70
coming two years                                             100




                                                                                                                  34
                                                               0
                                                                                Fee & Commission          Financing & Investment                Treasury               Interest Income


                                                                                                          FY09              FY10            FY11E           FY12E



                                                            Source: Company, ICICIdirect.com Research




Fee income commands higher contribution from IB fees        Exhibit 3: Contribution of fee and treasury income to moderate
while brokerage fees are likely to stay subdued
                                                                              1600                                                                                                 80
                                                                              1400                                                                                                 70
                                                                                                                                                                    1473
                                                                              1200                                                                                                 60
                                                                              1000                                                                  1191                           50
                                                                                           1089
                                                                (Rs Crore)




                                                                              800                                                  978                                             40




                                                                                                                                                                                        (%)
                                                                                                             889
                                                                              600                                                                                                  30
                                                                              400                                                                                                  20
                                                                              200                                                                                                  10
                                                                                 0                                                                                                 0
                                                                                           FY08             FY09                FY10E            FY11E              FY12E

                                                                                                                   Total           Fees + Treasury (RHS)

                                                            Source: Company, ICICIdirect.com Research




The institutional space is getting overcrowded, which is    Exhibit 4: Brokerage yields under pressure
putting pressure on broking yields                                            500                                                                                                 5.0
                                                                              450
                                                                                                                                                                                  4.5
                                                                              400
                                                                                                                                                                                  4.0
                                                                              350
                                                                 (Rs Crore)




                                                                              300                                                                                                 3.5
                                                                                                                                                                                        (%)




                                                                              250
                                                                                                                                                                                  3.0
                                                                              200
                                                                                                                                                                                  2.5
                                                                              150
                                                                              100                                                                                                 2.0
                                                                                           FY08            FY09                 FY10             FY11E            FY12E
                                                                                                          Broking Revenues               Broking yields(RHS)*

                                                            Source: Company, ICICIdirect.com Research *calculated yields




  ICICIdirect.com | Equity Research
                                                                                                                                                                                  Page 2
Edelweiss Capital (EDECAP)



                                                             Exhibit 5: Market share to stay stable
The market share is supported by treasury volumes, which
form ~55-60% of the total ADT. Client turnover is constant
at Rs 1,650 crore                                                              6000                                                                                                                                                                  10


The market is shifting gears towards the options end                           5000                                 8.1 7.4      6.8                                                                                                                 8
where Edelweiss has a very small exposure                                                                                                                                                          4.8                           4.5         4.5
                                                                                                                                            5.6




                                                              (Rs Crore)
                                                                               4000                                                                           5.1                        4.3                          4.1                            6




                                                                                                                                                                                                                                                          (%)
                                                                                                      5.9                                                                   4.7

                                                                               3000                                                                                                                                                                  4


                                                                               2000                                                                                                                                                                  2




                                                                                             Q4FY08

                                                                                                             FY08

                                                                                                                        Q1FY09

                                                                                                                                 Q2FY09

                                                                                                                                            Q3FY09

                                                                                                                                                              Q4FY09

                                                                                                                                                                            Q1FY10

                                                                                                                                                                                        Q2FY10

                                                                                                                                                                                                   Q3FY10

                                                                                                                                                                                                                     Q4FY10

                                                                                                                                                                                                                                 FY10

                                                                                                                                                                                                                                             FY11E
                                                                                                                                            ADT                        Market share (RHS)

                                                             Source: Company, ICICIdirect.com Research




                                                             Exhibit 6: Contribution from treasury to total income coming down quickly

                                                                                   400                  31                        32                                                                                                                 35
                                                                                   350                                                                                 28
                                                                                                                                                                                                  25                                                 30
                                                                                                                                 349
                                                                                   300                                                                                                                                                               25
                                                                                   250                                                                                                                                                 17
                                                                      (Rs Crore)




                                                                                                                                                                   251                                                                               20
                                                                                   200                                                                                                            245




                                                                                                                                                                                                                                                          (%)
                                                                                                                                                                                                                                       207           15
                                                                                   150
                                                                                   100                                                                                                                                                               10
                                                                                                       114
                                                                                   50                                                                                                                                                                5
                                                                                    0                                                                                                                                                                0
                                                                                                      FY07                       FY08                             FY09                            FY10                           FY11E

                                                                                                                                     Treasury gains                                  Contribution (RHS)


                                                             Source: Company, ICICIdirect.com Research




                                                             Exhibit 7: Finance book: Is it the next growth engine?

                                                                                    3000
                                                                                                                                                                                                                                                          2587
                                                                                    2500

                                                                                    2000                                                                                                                                                     1837
                                                                      (Rs Crore)




                                                                                    1500
                                                                                                                     1000                                                                                                     1030
                                                                                                      918
                                                                                    1000                                          700                800
                                                                                                                                                                                                         690
                                                                                                                                                                        550
                                                                                                                                                                                         450
                                                                                     500

                                                                                         0
                                                                                                      FY08


                                                                                                                      Q1FY09


                                                                                                                                   Q2FY09


                                                                                                                                                     Q3FY09


                                                                                                                                                                        Q4FY09


                                                                                                                                                                                         Q1FY10


                                                                                                                                                                                                            Q2FY10


                                                                                                                                                                                                                              Q3FY10


                                                                                                                                                                                                                                             FY10


                                                                                                                                                                                                                                                          FY11E




                                                             Source: Company, ICICIdirect.com Research




  ICICIdirect.com | Equity Research
                                                                                                                                                                                                                                                Page 3
Edelweiss Capital (EDECAP)



                                                              Exhibit 8: Growth in interest expenditure weighing on NII

Rise in borrowing cost is pressuring NII growth. The cost                      140                                                                                                                     123
of borrowing for Edelweiss is around 7.8% for FY10. This is
                                                                               120
likely to go up in a rising interest rate scenario                                                                                                                                                       100
                                                                               100                              93                                                     88
                                                                                                84
                                                                                                                                    78                                                  74




                                                                  (Rs Crore)
                                                                                     80                                    67                        68
                                                                                                                                              56                            60
                                                                                     60                                                                                                      46
                                                                                                     42 42                                                     37
                                                                                     40                                                                   31                     28               28
                                                                                                                      26                 22                                                                   23
                                                                                     20
                                                                                         0
                                                                                                Q2FY09              Q3FY09          Q4FY09           Q1FY10            Q2FY10           Q3FY10         Q4FY10

                                                                                                                                 Interest Income       Interest Expense           NII

                                                              Source: Company, ICICIdirect.com Research



                                                              We expect the incremental loan book to be generated from borrowing
                                                              leading to higher interest cost.

                                                               Exhibit 9: Net worth well maintained
                                                                                             3000
                                                                                                           2569.2
                                                                                             2500                                                                      2233.7                2266             2300
                                                                                                                                2115.4             2167.5
                                                                                             2000
                                                                        (Rs Crore)




                                                                                             1500

                                                                                             1000

                                                                                             500

                                                                                               0
                                                                                                        Q3FY09                  Q4FY09             Q1FY10             Q2FY10             Q3FY10              Q4FY10




                                                               Source: Company, ICICIdirect.com Research



                                                              Exhibit 10: Return matrix under pressure
                                                                               40


                                                                               30


                                                                               20
                                                                  (%)




                                                                               10


                                                                                     0
                                                                                                    FY07              FY08                    FY09                  FY10              FY11E            FY12E

                                                                                                                                               ROE             ROA

                                                              Source: Company, ICICIdirect.com Research




  ICICIdirect.com | Equity Research
                                                                                                                                                                                                       Page 4
Edelweiss Capital (EDECAP)




ICICIdirect.com coverage universe (BFSI)
Bank of India                                          NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    BANIND     CMP          319    FY10        1741.1       33.1      9.6         1.6        0.7     12.4
                           Target       330    FY11E       2156.0       41.0      7.8         1.4        0.7     14.2
Mcap (Rs Cr)   16777       Upside (%)   3.4    FY12E       2961.3       49.0      6.5         1.2        0.8     16.5
Bank of Baroda                                         NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code   BANBAR      CMP          677    FY10        3058.3       83.7      8.1         1.8        1.0     21.5
                           Target       722    FY11E       3710.5     101.5       6.7         1.5        1.1     21.4
Mcap (Rs Cr)    24746      Upside (%)   6.6    FY12E       4580.7     125.3       5.4         1.2        1.2     21.5
Dena Bank                                              NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    DENBAN     CMP          83     FY10         511.3       17.8      4.7         1.1        1.3     21.4
                           Target       91     FY11E        619.2       16.0      5.2         1.0        1.1     20.0
Mcap (Rs Cr)    2392       Upside (%)   9.1    FY12E        768.2       15.8      5.3         0.9        1.0     18.2
Indian Oveseas Bank                                    NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    INDOVE     CMP          92     FY10        1292.7       13.0      7.1         1.0        0.6      9.9
                           Target       90     FY11E        891.5       16.4      5.6         1.0        0.6     12.0
Mcap (Rs Cr)    5026       Upside (%)   -2.4   FY12E       1248.1       22.9      4.0         0.9        0.8     14.9
IDBI Bank                                              NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    IDBI       CMP          107    FY10        1031.1       14.2      7.5         1.1        0.5     13.2
                           Target       141    FY11E       1210.1       15.2      7.1         0.9        0.5     13.1
Mcap (Rs Cr)    7756       Upside (%)   31.8   FY12E       1513.0       19.0      5.6         0.9        0.5     13.9
OBC                                                    NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    ORIBAN     CMP          318    FY10        1134.7       45.3      7.0         1.1        0.9     14.6
                           Target       423    FY11E       1465.0       58.5      5.4         0.9        0.9     16.6
Mcap (Rs Cr)     7967      Upside (%)   33.0   FY12E       1767.9       70.6      4.5         0.8        1.0     17.2
Punjab National Bank                                   NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code     PUNBAN    CMP          958    FY10        3905.4      123.9      7.7         1.8        1.4     24.0
                           Target       1014   FY11E       4607.8     146.1       6.6         1.7        1.4     24.7
Mcap (Rs Cr)    30206      Upside (%)   5.8    FY12E       5336.4     169.2       5.7         1.5        1.4     26.2
SBI                                                    NP (Rs Bn)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    STABAN     CMP          2159   FY10          91.4     144.0     15.0          2.6        0.9     15.1
                           Target       2556   FY11E        106.8     151.6     14.2          2.0        0.9     14.2
Mcap (Rs Cr)     137065    Upside (%)   18.4   FY12E        140.6     199.4     10.8          1.7        1.0     15.1
Union Bank of India                                    NP (Rs Bn)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code     UNIBAN    CMP          283    FY10        2074.9       41.1      6.9         1.4        1.2     21.6
                           Target       343    FY11E       2547.3       50.4      5.6         1.2        1.2     22.0
Mcap (Rs Cr)    14277      Upside (%)   21.4   FY12E       3027.7       59.9      4.7         1.0        1.2     21.4
Axis Bank                                              NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    UTIBAN     CMP          1172   FY10        2514.5       62.1    18.9          3.1        1.7     19.2
                           Target       1302   FY11E       3129.7       76.5    15.3          2.5        1.6     17.5
Mcap (Rs Cr)   47486       Upside (%)   11.1   FY12E       4133.3      101.1    11.6          2.1        1.7     19.2
Dhanlaxmi Bank                                         NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code   DHABAN      CMP          148    FY10          23.4        3.6    40.5          2.4        0.3      5.4
                           Target       170    FY11E         66.7        7.8    18.8          1.6        0.7     10.3
Mcap (Rs Cr)    946        Upside (%)   15.2   FY12E        104.3       12.3    12.0          1.4        0.7     11.5
HDFC Bank                                              NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    HDFBAN     CMP          1805   FY10        2948.7       64.4    28.0          3.9        0.3     20.3
                           Target       2151   FY11E       3972.3       87.6    20.6          3.5        0.3     17.6
Mcap (Rs Cr)    82633      Upside (%)   19.2   FY12E       5051.4      111.4    16.2          3.1        0.3     20.0
Kotak Bank                                             NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    KOTMAH     CMP          725    FY10         464.2       13.4    54.1          6.3        1.5     11.5
                           Target       831    FY11E        548.4       15.9    45.8          6.2        1.4     12.9
Mcap (Rs Cr)     25208     Upside (%)   14.6   FY12E        743.4       21.5    33.8          5.5        1.7     16.2
South Indian bank                                      NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code     SOUIN0    CMP          155    FY10         233.7       20.7      7.5         1.3        1.1     18.0
                           Target       150    FY11E        277.9       24.6      6.3         1.2        1.0     17.8
Mcap (Rs Cr)    1752       Upside (%)   -3.2   FY12E        346.6       30.7      5.1         1.0        1.0     19.1
Yes Bank                                               NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code    YESBAN     CMP          258    FY10         477.7       14.1    18.4          2.9        1.6     20.3
                           Target       316    FY11E        666.4       19.6    13.2          2.6        1.5     20.2
Mcap (Rs Cr)    7759       Upside (%)   22.3   FY12E        890.6       26.2      9.9         2.1        1.4     22.7



  ICICIdirect.com | Equity Research
                                                                                                               Page 5
Edelweiss Capital (EDECAP)




Continued…

NBFC
IDFC                                                   NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code     IDFC      CMP          144    FY 09        848.0        6.5    21.9          3.0        2.8     14.3
                           Target       200    FY10       1062.1         8.2    17.5          2.6        3.2     15.9
Mcap (Rs Cr)     18579     Upside (%)   39.4   FY11E      1326.8         9.1    15.8          1.9        3.4     14.6
LICHF                                                  NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code     LICHF     CMP          885    FY 09        532.4       62.6    14.1          3.2        2.0     25.3
                           Target       1013   FY10        662.5       69.0     12.8          2.7        2.0     23.8
Mcap (Rs Cr)     8403      Upside (%)   14.5   FY11E       849.1       88.5     10.0          2.2        2.1     24.0
Rel Cap                                                NP (Rs Cr)   EPS (Rs)   PE (x)   P/ABV (x)   RoNA (%)   RoE(%)
Idirect Code     RELCAP    CMP          655    FY 09      1069.2        43.4    15.1          2.1        6.2     15.1
                           Target       800    FY10        578.6       23.5     27.8          2.1        3.0      7.5
Mcap (Rs Cr)     16078     Upside (%)   22.2   FY11E       905.9       36.8     17.8          1.9        4.3     11.0

Brokerage firms
Edelweiss Capital                                      NP (Rs Cr)   EPS (Rs)   PE (x)    P/BV (x)   RoNA (%)   RoE(%)
Idirect Code     EDECAP    CMP          404    FY10         245.7       30.7    13.2          1.3        5.7     11.1
                           Target       429    FY11E       247.4       31.0     13.0          1.2        4.1     10.2
Mcap (Rs Cr)     3032      Upside (%)   6.2    FY12E       263.2       33.0     12.2          1.1        3.7     10.0
India Infoline                                         NP (Rs Cr)   EPS (Rs)   PE (x)    P/BV (x)   RoNA (%)   RoE(%)
Idirect Code     INDINF    CMP          97     FY10         234.3        8.3    11.7          1.6        9.0     14.6
                           Target       111    FY11E       239.6         8.5    11.4          1.4        7.4     14.2
Mcap (Rs Cr)     2756      Upside (%)   14.8   FY12E       242.8         8.6    11.3          1.3        7.1     13.1
MOFSL                                                  NP (Rs Cr)   EPS (Rs)   PE (x)    P/BV (x)   RoNA (%)   RoE(%)
Idirect Code     MOTOSW    CMP          168    FY 09         93.4        6.3    26.6          3.0        6.6     11.8
                           Target       203    FY10        174.3       11.9     14.1          2.6       10.5     19.0
Mcap (Rs Cr)     2398      Upside (%)   21.0   FY11E       203.4       13.9     12.0          2.2       10.6     18.3




  ICICIdirect.com | Equity Research
                                                                                                               Page 6
  Edelweiss Capital (EDECAP)




RATING RATIONALE
ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns
ratings to its stocks according to their notional target price vs. current market price and then categorises them
as Strong Buy, Buy, Add, Reduce and Sell. The performance horizon is two years unless specified and the
notional target price is defined as the analysts' valuation for a stock.

Strong Buy: 20% or more;
Buy: Between 10% and 20%;
Add: Up to 10%;
Reduce: Up to -10%
Sell: -10% or more;

                                  Pankaj Pandey                                         Head – Research                                       pankaj.pandey@icicisecurities.com

                                                                        ICICIdirect.com Research Desk,
                                                                        ICICI Securities Limited,
                                                                        7th Floor, Akruti Centre Point,
                                                                        MIDC Main Road, Marol Naka,
                                                                        Andheri (East)
                                                                        Mumbai – 400 093

                                                                         research@icicidirect.com

ANALYST CERTIFICATION
We /I, Kajal Gandhi CA Viraj Gandhi MBA-CM Mani Arora MBA research analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report
accurately reflect our personal views about any and all of the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific
recommendation(s) or view(s) in this report. Analysts aren't registered as research analysts by FINRA and might not be an associated person of the ICICI Securities Inc.


Disclosures:
ICICI Securities Limited (ICICI Securities) and its affiliates are a full-service, integrated investment banking, investment management and brokerage and financing group. We along with affiliates are leading
underwriter of securities and participate in virtually all securities trading markets in India. We and our affiliates have investment banking and other business relationship with a significant percentage of
companies covered by our Investment Research Department. Our research professionals provide important input into our investment banking and other business selection processes. ICICI Securities
generally prohibits its analysts, persons reporting to analysts and their dependent family members from maintaining a financial interest in the securities or derivatives of any companies that the analysts
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from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities
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months following the date of publication of the research report for services in respect of public offerings, corporate finance, investment banking or other advisory services in a merger or specific
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